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Dec. 23, 2006
Copyright © Las Vegas Review-Journal


EMPLOYMENT REPORT: Nevada jobless rate holds steady

State figure at 4.2 percent for November

By JENNIFER ROBISON
REVIEW-JOURNAL



Click image for enlargement.

Nevada's unemployment rate remained at 4.2 percent in November, the Nevada Department of Employment, Training & Rehabilitation reported Friday.

Even as the Silver State's jobless rate held firm month over month, national unemployment inched up from 4.4 percent in October to 4.5 percent in November.

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The state's unemployment rate was 3.9 percent in November 2005.

Brent Boynton, a spokesman for Nevada Gov.-elect Jim Gibbons, said Gibbons was concerned about the year-over-year increase in joblessness.

"As (Gibbons) prepares his budget and policy agenda, keeping Nevada's economy strong will be a priority," Boynton said. "He will work hard to reverse this trend."

The November jobless rate in Las Vegas was 4 percent, while Reno posted 3.7 percent unemployment. In Carson City, 4.6 percent were unemployed, and in Elko, 3.7 percent were out of work. Unemployment in all four submarkets was up 0.1 percent to 0.2 percent when compared with jobless rates in October.

Terry Johnson, director of the Department of Employment, Training & Rehabilitation, said strong job formation in November indicated a healthy economy despite the state's unchanged unemployment rate.

Employers added 4,400 jobs in November, up from 1,800 jobs in November 2005.

"By producing a significant number of jobs last month, businesses demonstrated their confidence in the economy and the 2006 shopping season," Johnson said in a statement. "October's job growth wasn't as strong as past months, but the labor market proved its endurance in November."

The surge in jobs wasn't enough to lower Nevada's unemployment rate because it brought an accompanying jump in the number of job seekers. When people know jobs are available, such as during holiday hiring, new people enter the work force, said Mae Flennoy, a spokeswoman for the department. The economy can't always absorb all those work-force hopefuls.

The state's labor force increased by 18,600 in November.

The retail sector was responsible for the bulk of new jobs created, with store operators adding 3,600 positions statewide in November. Retail's performance was on par with the sector's job growth over the last five years, Johnson said.

"While the retail industry added almost the same number of jobs, it shows that the season's unemployment growth has not been negatively impacted by the housing slump as some economists had predicted," Johnson said. "Retailers prepared for a busy and prosperous shopping season, displaying their confidence in the economy and its low unemployment rate. As long as people are working, they have money to spend."

Retail sales were up 5 percent in November nationally when compared with November 2005. Sales figures for Nevada aren't yet available.

The construction industry shed about 900 jobs, but the department attributed the loss to winter weather in Northern Nevada.

The casino-hotel sector also dropped 1,500 jobs from October to November as the traditionally slow holiday season arrived.

Johnson said he's pleased with 2006 job growth and employment in Nevada, and he said he expects the Silver State will fare well in 2007, though a continued decline in housing sales could eventually affect employment in the construction, real estate and mortgage-lending sectors.

"Nevada has added 58,000 jobs since last November and has seen continued low employment rates throughout the year," he said. "With a number of major projects on the horizon and more and more industries moving to Nevada, 2007 looks very positive."



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